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Record Housing Costs for Bürgergeld Expose Regional Gaps and Coalition Rift

New data show singles in Munich receive €1,016 compared to €723 in Neustadt an der Waldnaab, intensifying calls to rein in soaring rent subsidies.

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Overview

  • In March the Bundesagentur für Arbeit paid a record €1.48 billion in housing costs for Bürgergeld recipients, accounting for 38 percent of total benefits.
  • Singles in Munich receive the highest average monthly aid at €1,016, while those in Neustadt an der Waldnaab get just €723, according to the latest figures.
  • Chancellor Friedrich Merz has suggested capping rent subsidies in an ARD interview, prompting SPD vice-chair Dagmar Schmidt to vow that benefits will not be cut.
  • A lack of affordable housing is forcing municipalities to approve rents above their own adequacy limits, allowing landlords to charge higher rates to welfare recipients.
  • An IAB study recommends overhauling income assessment rules to strengthen work incentives, which could remove nearly 400,000 households from dependency and generate up to 170,000 jobs.